PUBLIC LAW 97-424—JAN. 6, 1983
96 STAT. 2193
regulated companies) is amended by adding at the end thereof the following new paragraph: "(10) USE OF INCONSISTENT ESTIMATES AND PROJECTIONS, ETC., FOR PURPOSES OF PARAGRAPHS (1) AND (2). —
"(A) IN GENERAL,—One way in which the requirements of paragraph (1) or (2) are not met is if the taxpayer, for ratemaking purposes, uses a procedure or adjustment which is inconsistent with the requirements of paragraph (1) or paragraph (2), as the case may be. "(B) USE OF INCONSISTENT ESTIMATES AND PROJECTIONS.—
The procedures and adjustments which are to be treated as inconsistent for purposes of subparagraph (A) shall include any procedure or adjustment for ratemaking purposes which uses an estimate or projection of the taxpayer's qualified investment for purposes of the credit allowable by section 38 unless such estimate or projection is consistent with the estimates and projections of property which are used, for ratemaking purposes, with respect to the taxpayer's depreciation expense and rate base. "(C) REGULATORY AUTHORITY.—The Secretary may by regulations prescribe procedures and adjustments (in addition to those specified in subparagraph (B)) which are to be treated as inconsistent for purposes of subparagraph (A)." (c) EFFECTIVE DATES.— (1) GENERAL RULE.—The amendments made by subsections (a) and (b) shall apply to taxable years beginning after December 31, 1979.
26 USC 46 note.
(2) SPECIAL RULE FOR PERIODS BEGINNING BEFORE MARCH i, 1980.—
(A) IN GENERAL.—Subject to the provisions of paragraphs (3) and (4), notwithstanding the provisions of sections 167(1) and 46(f) of the Internal Revenue Code of 1954 and of any 26 USC 167, regulations prescribed by the Secretary of the Treasury (or ^^• his delegate) under such sections, the use for ratemaking purposes or for reflecting operating results in the taxpayer's regulated books of account, for any period before March 1, 1980, of— (i) any estimates or projections relating to the amounts of the taxpayer's tax expense, depreciation expense, deferred tax reserve, credit allowable under section 38 of such code, or rate base, or (ii) any adjustments to the taxpayer's rate of return, shall not be treated as inconsistent with the requirements of subparagraph (G> of such section 167(1)(3) nor inconsist- Ante, p. 2192. ent with the requirements of paragraph (1) or (2) of such section 46(f), where such estimates or projections, or such rate of return adjustments, were included in a qualified order. (B) QUALIFIED ORDER DEFINED.—For purposes of this subsection, the term "qualified order" means an order— (i) by a public utility commission which was entered before March 13, 1980, (ii) which used the estimates, projections, or rate of return adjustments referred to in subparagraph (A) to determine the smiount of the rates to be collected by
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